Coronado Industries Inc. constructed a building and acquired five assets during the current year.

Construction of Building: A building was constructed on land purchased last year at a cost of $254,400. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

Date Payment

March 1 $381,600

July 1 291,500

October 1 344,500

Coronado obtained a $742,000, 8% construction loan on March 1. Coronado repaid the loan on October 1. Coronado had $424,000 of other outstanding debt during the year at a borrowing rate of 9%.

Asset 1: Coronado acquired office furniture by making a $7,950 down payment and issuing a $10,600, 2-year, zero-interest-bearing note. The note is to be paid off in two $5,300 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $17,172.

Asset 2: Coronado acquired manufacturing equipment by trading in used manufacturing equipment. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows.

Cost of equipment traded in $55,120

Accumulated depreciation on equipment traded in - to date of sale 36,040

Fair value of equipment traded 26,500

Cash received 2,650

Fair value of equipment acquired 23,850

Asset 3: Four computers were acquired by issuing 500 shares of $1 par value common stock. The stock had a market price of $13 per share.

Assets 4 and 5: Coronado purchased these assets together for a lump sum of $243,800 cash. The following information was gathered.

Description Initial Cost on

Sellers Books Depreciation to

Date on Sellers Books Book Value on

Sellers Books Appraised Value

Forklifts $79,500 $21,200 $58,300 $53,000

Equipment 190,800 42,400 148,400 174,900

Trucks 68,900 15,900 53,000 37,100

Record the acquisition of each of these assets.